According to historical data, the Meta stock has shown consistent growth over the past decade. As we look ahead to the beginning of next year, the forecast for the Meta stock stands at $516.04. Based on the same foundation, here is the Meta stock forecast for each year leading up to 2030.

There are differing opinions among financial analysts regarding the future price of Meta shares. Some analysts predict a cost of over $1,500 per share by 2030, while others anticipate a range of $900 to $1,200. Nevertheless, at present, a single share is priced at $394, presenting investors with the potential to increase their investments by 2030 significantly.

SWOT Analysis

A) Strength

Impressive Financial Performance: META continues to demonstrate strong financial performance, with a notable surge in revenue and net income during the first nine months of 2023 in comparison to the corresponding period in 2022. This financial stability allows META to allocate funds towards new technologies, broaden its range of products, and navigate potential market downturns.

Meta’s success is attributed to its ability to constantly introduce new and diverse products, its large and active user base, its lucrative advertising operations, and its forward-thinking leadership. 

B) Opportunities

Potential avenues for expansion involve venturing into untapped markets and segments. A notable example of this is Meta’s recent purchase of 350,000 H100 graphics cards from Nvidia, which signifies a noteworthy change in its strategic focus. This decision, which involves a significant investment of around $9 billion, demonstrates a strong dedication to the innovative field of Artificial General Intelligence (AGI). The H100 GPUs are highly advanced AI processors that provide exceptional data processing capabilities necessary for the intricate computations involved in AGI research. This decision goes beyond a simple financial choice; it represents a strategic dedication to a technology that has the potential to transform our comprehension and engagement with AI completely. Through the acquisition of these top-tier GPUs, Meta is not only bolstering its computational capabilities but also strategically positioning itself as a leader in cutting-edge technology that holds the potential to provide AI capabilities similar to human cognitive functions.

Meta’s significant investment in Nvidia AI chips showcases the company’s commitment to staying at the forefront of AGI development. This development not only enhances their technological capabilities but also establishes a new standard in the industry. 

Another significant move is Meta’s intentions for the Metaverse: Meta’s strategic shift towards building the metaverse presents significant growth opportunities. With its innovative approach, META has the opportunity to solidify its market presence and create additional sources of income.

C) Weaknesses

Relying heavily on advertising revenue, META’s financial performance is susceptible to market conditions and the volatility of this revenue stream. This reliance could jeopardise META’s financial stability in the event of a decline in the advertising market.

Regulatory Challenges: META encounters continuous regulatory hurdles in different jurisdictions, potentially resulting in higher expenses, possible penalties, and harm to its reputation. These challenges may pose limitations on META’s operations or expansion in specific markets.

D) Threats

Fierce Competition: META faces strong competition in its market, with formidable rivals like Google, Apple, and Amazon alongside other new players like TikTok. These competitors possess substantial resources and may create products or services that surpass META’s offerings, potentially resulting in a decline in market share.

Concerns about data privacy: META’s ability to collect and use user data, which is crucial for its advertising business, may be limited due to potential changes in data privacy laws. It could have a detrimental effect on META’s revenue and profitability.

REASONS TO INVEST IN META PLATFORM INC.

Many investors are drawn to growth stocks due to their potential for above-average financial growth, which can attract market attention and generate impressive returns. However, uncovering a growth stock that can truly fulfil its potential takes time and effort. Luckily, Meta Platform Inc. stock is currently a highly recommended investment.

Meta is a stock that stands out with a favourable Growth Score and a top Zacks Rank. Research indicates that stocks with strong growth characteristics consistently outperform the market. Additionally, stocks with a high Growth Score and a favourable Zacks Rank tend to generate even higher returns. This stock is Meta Platform Inc.

A) Increasing Profits

Undoubtedly, nothing holds more significance than earnings growth, as investors are primarily seeking surging profit levels. For growth investors, double-digit earnings growth is highly desirable and often a promising sign for the company’s prospects and potential stock price gains. 

Meta’s projected Earning Per Share (EPS) growth for this year is an impressive 44.3%, surpassing the industry average of 38.4%. EPS is a valuable metric that provides insight into a company’s profitability by measuring how much money it generates per share of stock. A higher EPS is seen as more valuable as investors are willing to pay a premium for shares of a company that is believed to have higher profits compared to its share price.

B) Impressive utilisation of assets

The asset utilisation ratio also referred to as the sales-to-total-assets ratio, tends to be disregarded by investors despite its significance as an indicator in growth investing. This metric demonstrates the effectiveness of a company in utilising its assets to generate revenue.

Currently, Meta Platforms boasts a S/TA ratio of 0.64, indicating that the company generates $0.64 in sales for every dollar in assets. When comparing this to the industry average of 0.55, it becomes evident that the company is operating with a higher level of efficiency.

Aside from the effectiveness of generating sales, the growth of sales also holds significant importance. Meta Platforms is also in a strong position when it comes to sales growth. The company’s sales are projected to increase by 14.4% this year, surpassing the industry average of 6%.

C) Futuristic Earnings

The validation of a stock’s superiority in terms of the metrics mentioned can be further confirmed by examining the trend in earnings estimate revisions. An upward trajectory is certainly advantageous in this situation. Research has demonstrated a clear link between changes in earnings estimates and short-term fluctuations in stock prices.

Conclusion



Meta Platforms has received a strong buy consensus rating, as determined by numerous financial analysts on Wall Street. Investors should consider the stock price projections for META in the years 2024 to 2030, presenting a potential to increase their investments significantly over six years. Naturally, every investment comes with a certain level of risk. Meta Platforms Inc. holds a dominant global position in social media and messaging, backed by vital intellectual and financial resources. It received a ‘AA-‘ long-term issuer credit rating from S&P Global. Investors should consider conducting further research on Meta Platforms Inc. However, they are welcome to reach out to Innovest Global Wealth for further discussion and a way forward. Now is an opportune moment to purchase Meta, given its current price.